MARINE ENGINEERS' BENEFICIAL ASSOCIATION (AFL-CIO)
         "On Watch in Peace and War Since 1875"

MEBA TELEX TIMES       FEBRUARY 08, 2008

The Official Union Newsletter

NUMBER 6

In this issue...
President proposes FY '09 budget...Members crew up ALLIANCE ST. LOUIS...LaTourette drops by HQ...TWIC openings...NASSCO, Aker ship milestones...We get instep, kick up our heels and lace up another issue that'll help you stay on your toes. Don't pussyfoot around with ankle-biting, arch-rival newsletters that pull your leg -- we shoe them away and give those callus little piggies the boot! Sweeping you off your feet with the latest news, we bare our soles the Telex Times will knock your socks off!

PRESIDENT'S BUDGET A WIN FOR MSP, MIXED FOR OTHER MARITIME PROGRAMS
President Bush released the last budget request of his Administration this week. It presents a mixed bag for maritime, with good news for the Maritime Security Program but bad news for the Great Lakes and Army Corps of Engineers. The release of the President's budget is the first step in the budget process for Fiscal Year 2009.

Included in the President's budget is a request for $174 million for the Maritime Security Program. This represents an increase of $18 million over last years' funding level. The 2009 FY is the first in a series of two authorized funding increases for MSP that were built in to the MSP reauthorization passed in 2003. The next one will come during FY 2012. This was a big win for the maritime industry. The President' budget request last year included a 1% cut to MSP, which was successfully replaced thanks to the lobbying efforts of maritime labor. In recognition of the possibility of another cut, maritime labor and the rest of the industry swung into high gear last year to make the case for full MSP funding in the President's budget this year.

The Maritime Administration saw a small cut in its operations funding, although funding for King's Point increased slightly. As is the annual routine, Pres. Bush zero-funded the Title XI Loan Guarantee shipbuilding program save for operating expenses for the existing projects - adding up to $3.5 million. $18 million was slotted for ship disposal which will allow the agency to rid the Ghost Fleet of at least 14 vessels. That money will also help continue the ongoing preservation work on the Nuclear Ship SAVANNAH. M.E.B.A. has been participating in that work. $277 million was proposed for MarAd's management of the Ready Reserve Force Fleet.

The President's request also includes a proposed 16% cut in spending for water quality programs on the Great Lakes. Overall, $297 million for Lakes programs was requested, representing a drop from the $353 million that was appropriated for the current year.

Dredging programs on the Lakes also took a hit under the Bush plan. Under the proposal, the Army Corps of Engineers budget for Great Lakes dredging was reduced by 35% - $89 million proposed compared with $140 million this year. The President's budget request marks the first milestone in a months-long process of passing a budget for the Federal Government. Congress now takes the lead, reviewing the President's request and beginning to develop their annual appropriations bills. Congress does not have to follow the President's budget request, but generally the request has significant influence on the Congressional appropriations project, especially for non-controversial items like MSP. Members of Congress are expected to begin their work on their funding bills soon.

MEMBERS CREW UP ALLIANCE ST. LOUIS
The Norwegian-flagged HÖEGH PARIS had an extreme make-over earlier this week in Baltimore. When it sailed out of the port bound for Beaumont, she carried a new name, new crew and new flag. E-Ships, which is part of Maersk Line, Ltd., brought in the vessel, built in 2005, to replace the aging MAERSK NEVADA in the Maritime Security Program. The NEVADA, like her sister ship MAERSK NEBRASKA which was also replaced, was modified and began serving in the bulk trades with M.E.B.A. deck and engine officers aboard. The PARIS was renamed the ALLIANCE ST. LOUIS and M.E.B.A. deck and engine officers, along with an SIU unlicensed crew, replaced the Filipino crew at the Baltimore stop. The Stars and Stripes replaced the Norwegian flag in a brief ceremony and the vessel steamed out of the port late on Monday.

The M.E.B.A. deck crew consists of Captain Bill Black, Chief Mate Fran Goodwin, Second Mate Gene Morrow, Third Mate Lou Ioanilli and Third Mate Kurt Mausolf. The engine crew consists of C/E Phil Strissel, 1st A/E George Dubuc, 2nd A/E Shawn Bowman, 3rd A/E Greg Fennessey and 3rd A/E John Ward.

REP. LaTOURETTE DROPS BY HQ FOR MARITIME CHAT
Republican Congressman Stephen LaTourette, who represents Ohio's 14th District (Cleveland area), stopped into M.E.B.A. Headquarters this week to chat with M.E.B.A. and MM&P representatives about important maritime issues. Areas of concern that were discussed included Great Lakes, short sea shipping, LNG and Coast Guard Administrative Law Judge issues. Among other committee assignments, the Congressman serves on the Transportation & Infrastructure Committee and is the ranking member on the Coast Guard and Maritime Transportation Subcommittee.

LATEST TWIC CENTER OPENINGS
A handful of new Enrollment Centers to obtain Transportation Worker Identification Credentials have opened this week. Members must obtain a TWIC by September 25, 2008 or they will not be permitted to sail. The program was implemented to ensure that those who have unescorted access to secure areas of ports and vessels are not security threats.

This week, centers were opened in Ashtabula, OH; Everett, WA; Louisville, KY; Nashville, TN; Oswego, NY; and Port Everglades, FL. Over the next two weeks, centers are scheduled to be opened in La Plata, MD; Portland, ME; Lorain, OH; and Sault Ste. Marie, MI though additional center openings could still be announced during that time frame.

To make it easier, members should pre-enroll for TWIC on the TSA website at www.tsa.gov/twic.  Pre-enrollment speeds up the process by allowing workers to provide biographic information and schedule a time to complete the application process in person. This reduces waiting and in-person enrollment times for each individual. More information on the TWIC program is available at www.tsa.gov/twic and additional information on port security is available at the U.S. Coast Guard's Homeport site at http://homeport.uscg.mil by clicking on the Maritime Security link.

LONGTIME MARITIME FRIEND GENE TAYLOR SLATED FOR SALUTE TO CONGRESS AWARD
The International Propeller Club of the United States announced that Congressman Gene Taylor (D-Miss.) has been selected as the next recipient of the Salute to Congress Award. Rep. Taylor is being honored for his consistent and strong support of the United States maritime industry. The twenty-fourth annual Salute to Congress dinner will be held Tuesday, April 29, 2008, at the Congressional Country Club located in Bethesda, Maryland. The event draws some of the biggest name in the U.S. maritime industry along with a bevy of Congressional Members and Executive Branch officials.

AKER SHIPYARD LAUNCHES OVERSEAS NEW YORK
The OVERSEAS NEW YORK, the fourth double-hulled tanker in Aker Philadelphia Shipyards current build program, was floated off its blocks in the yards 1,300 foot long Building Dock and transferred to the adjacent Outfitting Dock on the morning of Saturday, January 26. Testing and commissioning of the vessels systems will take place during the coming months, with the ship scheduled for delivery in the second quarter of this year. Upon completion, the MT-46 Veteran Class product tanker will be chartered to OSG and crewed up with M.E.B.A. officers.

Aker Philadelphia Shipyards tanker build program consists of firm agreements for twelve 46,000 dwt Veteran Class product tankers, with options for up to an additional 13 ships. Three of these tankers were delivered in 2007 and are currently in service. The vessels will be owned by Aker American Shipping.

NEXT NASSCO T-AKE GETS CHRISTENED THIS WEEKEND
The U.S. Navys newest resupply ship, USNS ROBERT E. PEARY (T-AKE 5), will be christened at the NASSCO San Diego shipyard this weekend. The Navy is expected to order at least 14 of the vessels. Upon completion, the ships are transferred to Military Sealift Command operation and are crewed up with expert M.E.B.A. officers.

Named in honor of the man who led the first expedition to the North Pole, USNS ROBERT E. PEARY is the fifth ship of the T-AKE class of dry cargo-ammunition vessels that NASSCO is building for the Navy. The first four ships in the program, the USNS LEWIS AND CLARK, USNS SACAGAWEA, USNS ALAN SHEPARD and USNS RICHARD E. BYRD are already in service. When the ROBERT E. PEARY joins the fleet this summer, its primary mission will be to deliver more than 10,000 tons of food, ammunition, fuel and other provisions to combat ships on the move at sea.

In related NASSCO news, the shipyard has been awarded a $460 million contract from the U.S. Navy for the construction of the tenth T-AKE dry cargo-ammunition ship and to purchase long-lead construction materials for an eleventh ship. NASSCO is already under contract to build the first nine ships of the class.

Under the contract, NASSCO receives full funding for T-AKE 10s construction. Last July, NASSCO received a $100 million contract to purchase the long lead materials for the ship. Construction of the ship is scheduled to begin in January 2009, with delivery to the Navys Military Sealift Command (MSC) in the fourth quarter of 2010. In addition, the contract award includes $100 million for procurement of T-AKE 11s engines and other components that have significant manufacturing lead times. Construction of the eleventh ship is scheduled to begin in the first quarter of 2010, with delivery in the fourth quarter of 2011.

STUDY PREDICTS ECONOMY WILL STUNT CONTAINER TRAFFIC
Traffic at the nations major retail container ports will see weak or even negative growth compared with last year for the next several months as the nations economic slowdown continues, according to the monthly Port Tracker report released this week by the National Retail Federation and Global Insight.

Ports surveyed handled 1.3 million Twenty-foot Equivalent Units (TEU) of container traffic in December, the most recent month for which actual numbers are available. The number was down 6.4 percent from Novembers 1.39 million TEU, and 0.9 percent from December 2006. January was estimated at 1.28 million TEU, down 1.1 percent from January 2007, and February is forecast at 1.21 million TEU, down 7.6 percent from February 2007.

If the forecasts hold true, February will be the seventh month in a row to show a decline from the same month a year earlier as retailers reduced imports to reflect sales expectations. (August was down 1.4 percent, September 1.9 percent, October 3.5 percent and November 2.2 percent.)

February is traditionally the slowest month of the year for retail imports, and numbers are expected to resume year-over-year growth in March. March is forecast at 1.3 million TEU, up 2.5 percent over March 2007, April at 1.38 million TEU, up 4 percent over April 2007, and May at 1.4 million TEU, up 1.7 percent over May 2007. June is forecast at 1.44 million TEU, down 0.9 percent from June 2007.

The numbers come two weeks after the Commerce Department reported the weakest holiday season in five years at 3 percent sales growth and NRF issued its 2008 economic forecast calling for 3.5 percent growth, the lowest increase since 2002. NRF strongly supports legislation pending in Congress to boost consumer spending by providing taxpayers with rebate checks.

JAPAN LOOKS TO DOUBLE FLEET
The Japanese government is planning to double its ship registry in the next five years in an attempt to stem the rapid decline in the number of such vessels, according to the draft of the Basic Plan on Ocean Policy compiled by the government's Ocean Policy Headquarters. Japans Yomiuri Shimbun reported that the government also is seeking to increase the number of Japanese-crewed ships on overseas service over the next 10 years by half.

As of 2006, the number of ships registered in Japan dropped below 100, and Japanese mariners onboard ships in international service numbered less than 3,000. Japan depends heavily on marine transport, and because of the present state of affairs, the nation could have difficulty securing necessary ocean transportation in case of emergency. The government will request that shipping companies, which will benefit from the reduced tax rate the government intends to introduce, increase the number of Japan-registered ships and Japanese crews.

REGULAR MONTHLY MEETINGS
Monday, March 3 - Boston, Seattle;
Tuesday, March 4 - Baltimore, Houston, Jacksonville, San Francisco;
Wednesday, March 5 - Calhoon School, Charleston, New Orleans, Portland;
Thursday, March 6 - L.A., New York, Norfolk, Tampa;
Friday, March 7 - Honolulu.

--------FINISHED WITH ENGINES---------